Kbr, Inc. · NYSE:KBR
Kbr — Capital One Southcoast 4th Annual Energy Conference (December 2009)
15 slides from Kbr's conference presentation, Dec 9, 2009
Slide 1: Capital One Southcoast 4th Annual Energy Conference
Capital One Southcoast 4th Annual Energy Conference Sue Carter – Senior Vice President and CFO John Rose, President – Hydrocarbons Group December 9, 2009
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains “forward-looking statements.” All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements include statements about the benefits of the split-off, the discussions of K
Slide 3: KBR Organizational Structure in 2006
KBR Organizational Structure in 2006 Chief Executive Officer Energy & Government & Corporate Chemicals Infrastructure Finance Administration Legal 1
Slide 4: KBR Proposed Organizational Structure in 2010
KBR Proposed Organizational Structure in 2010 Chief Executive Officer Government, Defense, Corporate Hydrocarbons Services & Infrastructure; Power & Industrial Finance Gas Monetization Buildings Group N. America G&D Administration Oil & Gas Canada Operations International G&D Legal Downstream Constr
Slide 5: LogCAP – Strategically Replacing Income
LogCAP – Strategically Replacing Income Incremental Revenues to Replace LogCAP Volumes LogCAP* Hydrocarbon, Services, or Other G&I Today Future** Revenue ~ $5B Revenue Range ~ $1B - $2B Margin ~ 2.4% Margin Range ~ 6 - 12% Income ~ $120M Income ~ $120M Focus on Prospective Income Drivers * LogCAP ma
Slide 6: Growing KBR’s Prospects to Projects
Growing KBR’s Prospects to Projects Gas Monetization • Gorgon LNG EPCm Expansion trains at existing or • Skikda LNG EPC ongoing projects • Tangguh LNG EPC EPC/EPCm after FEED work • Inpex Ichthys LNG FEED Australian LNG opportunities • Pluto 2/3 LNG FEED Oil & Gas Expanded work from FEEDs • Big Foot
Slide 7: Growing KBR’s Prospects to Projects
Growing KBR’s Prospects to Projects Downstream PMC growth at existing projects • Ras Tanura Integrated Project PMC/EPC/EPCm after FEED work • Yanbu Export Refinery Leverage technology for expanded opportunities • African Refinery FEEDs Services Grow BE&K acquired capabilities • NA Construction & Bui
Slide 8: Job Income Growth Excluding LogCAP
Job Income Growth Excluding LogCAP $627M +15% $546M +44% $379M $193M $183M $193M 2007 2008 2007 2009 Nine Months Ended September 30, ME Operations Job Income KBR excluding ME Operations Job Income 6
Slide 9: KBR Corporate
KBR Corporate
Slide 10: Strong Balance Supports Functional Options
Strong Balance Supports Functional Options Capitalization @ 9/30/09 ($ in millions) Available Cash $ 1,020 Cash Associated with JVs & Projects 205 Discretionary Cash $ 815 Acquisitions Share Repurchases Dividends Reinvest in Existing Business 8
Slide 11: Working Capital Management
Working Capital Management ¾Focused on reducing general business accounts receivable ¾Managing accounts payable ¾Resolution of unbilled receivables on uncompleted contracts ¾Collecting on past disputes (EPC 1) ¾Government Business ¾ As LogCAP work declines, less working capital requirements ¾ Dilige
Slide 12: Business Development Oversight
“Best in Class” Risk Management & Awareness Business Development Oversight Identification Measurement Analysis Pricing Management Reporting Risk Management & Reporting Commercial Legal Technical Financial Execution 10
Slide 13: Prudent Financial Management & Focus
Prudent Financial Management & Focus 2007 – 2009 Growth* SG&A Comparison KBR Revenue Peer Average SG&A*** 44% 6.4% KBR SG&A** 4.8% KBR SG&A** 14% * Compares growth from first nine months ended 2007 compared to first nine months ended 2009 ** KBR SG&A represents corporate general and administrative e
Slide 14: Presentation Summary
Presentation Summary • Greater transparency into the KBR organization for stakeholders • Strategically replacing declining LogCAP work with other business opportunities • Strong balance sheet with emphasis on cash management • Prudent management focus on risk management and controlling overhead cost
Slide 15: We Deliver
We Deliver
KBR — Capital One Southcoast 4th Annual Energy Conference (December 2009) on 6ix